Anti-trafficking authorities in Dong Nai province has caught a Chinese company red-handed trying to pass Chinese products as Vietnamese ones before exporting them to the US.
Anti-trafficking authorities in Dong Nai Province has caught a Chinese company red-handed trying to pass Chinese products as Vietnamese ones before exporting them to the US.
The SPC Tianhua Vietnam, a 100% Chinese invested company based in the Nhon Trach Industrial Zone No 3, was busted replacing Chinese labels with Vietnamese ones on chemical products due for export to the US.
Thirteen tons of them were found bearing counterfeit Vietnamese brands. The remaining 87 tons still bear Chinese labels.
The total products are worth VND4.5 billion (US$214,000).
The products, used to treat water in swimming pools, were made entirely in China.
The illegal practice could stem from the fact that Vietnamese products enjoy favorable tax rates in the US.
According to Dong Nai Newspaper, the company in 2011 exported 133 tons of chemical solution called Long Lasting Chlorinating Granular 89% Min (TCCA MULTI-GRANULAR) via the Nhon Trach Customs Office.
Strangely, the Tianhua company one month uses just 46 cubic meters of water and 585kWh of electricity. It hires just under 10 employees.
The water and electricity consumption is equal to an average amount used by one normal household in Vietnam.
Local authorities suspect the company is not involved in production but just a front to illegally import products from China to export them to the US.
(Source: TTNews)
